FREQUENTLY ASKED QUESTIONS

The following information is based upon our experience and is accurate to the best of our knowledge. However, legal validity is not guaranteed - WE ARE NOT ATTORNEY'S.

Q. Do I have to be a resident of the state?

A. No. In fact you do not have to be a U.S. citizen.

Q. Do I have to be located in the state?

A. No. You never have to set foot in the state. If you are not physically present in the state, you must have a resident agent.

Q. What is a resident agent?

A. It is someone or a corporation with offices in the state who can act as your agent for acceptance of legal service. The resident agent is the Secretary of State's recognized contact for your corporation. You must have a resident agent if you have no physical presence in the state of incorporation. Conversely, you do not need one if you do have a physical presence in that state. Corporate Formality includes a full year of resident agent service for all of its' clients as part of the incorporation package.

Q. Can I conduct business in other states?

A. Yes. But you must comply with local laws and licensing of the state in which you do business.

Q. What is a foreign corporation?

A. Any corporation doing business in a state other than the state in which it was originally, or currently incorporated.

EXAMPLE: You Incorporated your business in California, now you wish to conduct business, under that same corporation name in the state of Nevada. Your California Corporation is considered a "foreign corporation" to the state of Nevada, as well as to all states other than the state of California. As such, you would HAVE TO register with the secretary of the state of Nevada as a FOREIGN ENTITY. Fee's are associated with such a registration.

Q. I conduct business in many states, do I need to register with each one?

A. This is tricky. If you actually transact business in that state then you need to register. If you are merely promoting your business in that state then you probably do not have to register. One rule of thumb is: where do you take customer orders. In most instances, if you do not have any active and regular operations in the state, then you do not need to register as a foreign corporation. If you have doubts, you should get a legal opinion.

Q. Where can I have bank accounts?

A. Anywhere. You can open up your corporate account in virtually any bank by providing the proper documents. Normally these include, Articles, Federal ID, Board Resolution, and good I.D. of the account signatories.

Q. What does it cost to incorporate?

A. Very little with Corporate Formality. Costs include

Costs include

State fees,

Corporate Kit fees,

Resident agent fees, and

Service charges.

So don't be fooled by those $25 and $45 eye-catching quotes from some of our competitors. They are misleading and inaccurate! Your best defense in understanding the true cost is to get to the bottom line. What will you be paying for the entire package. Corporate Formality is the lowest priced service - Guaranteed. These fees include the most current Nevada filing fees effective as of: Thursday, 28-Aug-2008 19:53:32 EDT.

Q. Why is Nevada so popular as a corporate haven?

A. Many reasons. Nevada does not disclose ownership. Unless you go public, no one will know who the shareholders are. Nevada has no state income tax. Nevada is the only state that does not have an information exchange agreement with the IRS. One person can incorporate and hold all offices. Annual fees are among the lowest in the nation. Meetings and activities do not have to be held in the state. A Nevada corporation can own other corporations, real estate, and stock. The State of Nevada is friendly to business and minimizes taxes, regulations, and oversight. You just can't find it any better.

Q. Can my business in my home state be owned by a Nevada corporation?

A. Yes. Beautiful idea. Your accountant can establish methods for making your home business less profitable to the benefit of your Nevada corporation where taxes are lower.

Q. Is it difficult to operate as a corporation?

A. No. We make it easy for you. You do have to document key events and you must have an annual meeting. Even if you are a one person corporation. Just follow our standard minutes and modify them to meet your situation. It takes a few minutes but it is extremely important that you behave like a corporation.

Q. Can I use personal assets in my corporation?

A. Careful here. You can give, loan or rent them but you must document the transaction. In essence you can be a supplier of services. Do not commingle your bank accounts however. Keep money separate or you could offer creditors the same benefit of access to your funds. Rule of thumb. You are incorporating for certain benefits, among them liability limitation. So keep your stuff separate from the corporations "stuff".

Q. Can my corporation operate out of my home?

A. Yes. You still need to comply with local law and restrictions about that. But you can rent space and equipment to your corporation.

Q. Are corporate officers a matter of public record?

A. Yes. Names and addresses are filed with the state and are therefore available to anyone. Nevada requires this filing annually. They do not require notification of intervening changes. (Get the picture?). Other states may have the same requirement.

Q. Can one person hold all offices?

A. Yes. In Nevada the same person can be president, treasurer, secretary, and director.

Q. How many directors are required?

A. Only One [1] in Nevada.

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